Zara miles perceptive software

Sale trends are analyzed along to runway releases and quickly incorporated into the next line of production, creating a cycle of iteration and innovation. Most of manufacturing is done close to its home base, in and around the Iberian Peninsula.

High European manufacturing costs are offset with cost savings associated with fast turnarounds e. Distribution takes place twice a week to ensure store inventories are constantly kept fresh and unique. The logistics system, based on proprietary software, ensures that the time between receiving an order at the distribution center to the worldwide delivery of the goods in the store is between 24 and 48 hours.

Zara adopts a centralized distribution system with every single item of clothing coming through its distribution center in Spain, ensuring consolidation of orders to individual stores. It will be interesting to see whether its winning centralized operating model will stand the strain of its global expansion. Fashion: A better business model. Zara leads in fast fashion. Retreived from The Telegraph:. Thanks Aya. As a loyal Zara customer, it is very interesting to see how the company supports the fast fashion idea with fast operations throughout its supply chain.

The one question I have is that as Zara expands globally, does it make sense for them to maintain the centralized distribution system, with all its clothing items going through the distribution center in Spain before being dispatched to across the globe?

Will it be easier and faster to also build manufacturing and distribution facilities elsewhere in the world? Thank you for taking the time to read Zhihan! Aya, this was super interesting. Thank you for sharing. Zara opened their first store in India, a couple of years back and ever since, I have been a loyal supporter. I am wondering if this is because of the limitations of the centralized distribution model or is this is a planned strategy to test out collections in the West first?

This is similar to what TV industry did earlier. Serials produced by HBO would release in India almost a year later but soon they realized that the delay harmed them, in the form of piracy. Now, they try to atleast launch the popular series on the same date across the world.

The designs are prepared and delivered within 15 days and made Zara the most sought after brand. Customers were able to receive new exclusive designs that make them unique. This sets a competitive advantage for Zara compared to its competitors. Zara adapted to the changing technology world. Zara integrated technology with their business processes.

Zara's Management Information System collected information from various sources. Store visits, customer feedback, logistics, factory inventories, and more were used initially. MIS helped Zara manage all their stores from their headquarters in Spain. They handled the store decor, racks as well as the music inside the stores. The manager could be instructed to have it set up as expected.

The use of PDAs helped collect customer feedback on likes and dislikes. Valuable insights into the sales forecast and probable design changes were predicted. The huge amount of raw data needed to be analyzed daily. The data is utilized to better optimize business processes. The logistics brought back raw materials from places where product deliveries were made. Customer feedback became an important part of Zara's system.

They executed suggestions within the shortest time possible. They made staff available to help customers by handling minor tasks. Pre-ironing clothes during delivery was an example of this. They optimized store staff availability during peak hours using technology.

Zara was listening to its customers as well as providing the needed changes. This increased their customer visits to their stores. The collected data is sent directly to the headquarters.

It is analyzed to understand the needed changes. The rectifications are made to the supply chain and inventory systems. Customers would not wait to decide on the outfits they liked as it may not be available on their next visit. The limited stock of designs helped Zara promote its designs as exclusive. This made customers happy to purchase without waiting for a price drop. This remains one of the key challenges for Zara today as the cost of technology has reduced in recent years.

Another challenge would be to tackle the trend of online shopping. It has taken prevalence in recent times. Zara needs to be ready for this challenge. In addition to a health and wellness center, the building features a dodge ball and exercise room in which staffers can unwind. When it is time for work, though, the building features more than collaboration enclaves and 50 conference rooms. Its training areas are also a nod to the company's Kansas roots with names such as "Ruby Slippers" and "Yellow Brick Road.

In addition to snazzy amenities, the new space was built with sustainability in mind. Roughly 23 percent of the facility is built with recycled materials, including its 18,sqaure feet of carpet and dark wood from area farms.